HashKey, a prominent Asian cryptocurrency exchange, will soon be offering its retail customers the option to trade in two of the most dominant digital currencies: Bitcoin and Ethereum, according to a report.

This move by HashKey comes after securing crucial regulatory clearances, positioning Hong Kong as a frontrunner in adopting and legitimizing cryptocurrency trading for retail investors.

Regulatory Greenlight Spurs Crypto Trading

HashKey has since been making significant strides forward in the crypto space. The journey began on August 3 when the firm, in tandem with OSL, achieved a milestone by receiving an enhanced license status. This advancement paved the way for exploring a broader spectrum of services.

With this newly acquired privilege to launch Bitcoin and Ethereum retail trading in Hong Kong, starting from August 28, the exchange is set to embark on a fresh chapter, catering to the retail segment of Hong Kong’s investment community.

This decision helps local investors using HashKey’s platform to diversify their portfolios, allocating up to 30% of their net assets into the world of digital currencies. 

The exchange’s leap into retail trading is supported by two crucial licenses sanctioned by Hong Kong’s Securities and Futures Commission (SFC).

The first, the Type 1 license, facilitates HashKey to launch a virtual asset trading platform compliant with Hong Kong’s securities regulations.

According to the report, the subsequent Type 7 license further empowers the platform to offer automated trading solutions to a broad audience, encompassing institutional and individual traders.

A Prudent Approach To Retail Crypto Trading

HashKey’s Chief Operating Officer, Livio Weng, provided further insight into the exchange’s strategy. Focused on serving retail investors’ essentials, HashKey will initially offer trading options for Bitcoin and Ethereum only.

Weng’s rationale lies in the volatility associated with altcoins, emphasizing the need to present investors with tokens that are perceived to have relatively lower risks, especially in uncertain market conditions.

To diversify its reach and enhance accessibility, Weng disclosed that HashKey is collaborating with approximately 5 local Hong Kong brokerages. This partnership seeks to incorporate the exchange’s crypto trading services within these brokerage platforms, attracting millions of existing stock traders in the region.

To streamline the trading experience, users can link their bank accounts, facilitating deposits in both Hong Kong and U.S. dollars.

However, in line with regional policies and the broader crypto stance, HashKey has decided to restrict users from mainland China from accessing its services, aligning with China’s 2021 mandate that banned crypto transactions.

Weng remains optimistic about HashKey’s retail venture. The firm aims to expand its user base from 500,000 to 1 million by the end of the year. According to Weng, if market conditions are favorable, HashKey could cater to 10 million users by 2025.

Featured image from iStock, Chart from TradingView